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STRATAGEM PROBLEM STATEMENT

CONTENTS
1.0INTRODUCTION
2.0 STRATEGIES
3.0 FINANCIAL STATEMENT
4.0 CONCLUSION

Appendices
Appendix 1 SWOT analysis for e-commerce retail market

1.0 INTRODUCTION
India is at the cusp of a digital revolution. Declining broadband subscription
prices, aided by the launch of 3G services, have been driving this trend. This
has led to an ever-increasing number of netizens. Furthermore, the likely
launch of 4G services is expected to significantly augment the countrys Internet
user base.Internet has become an integral part of this growing population
segment for remaining connected with friends, accessing emails, buying movie
tickets and ordering food. The changing lifestyles of the countrys urban
population have also led many people relying on the Internet for their shopping
needs. The convenience of shopping from the comfort of ones home and
having a wide product assortment to choose from has brought about increased
reliance on the online medium. The trend of online shopping is set to see greater
heights in coming years, not just because of Indias rising internet population,
but also due to changes in the supporting ecosystem. Players have made
intensive efforts to upgrade areas such as logistics and the payment
infrastructure. Furthermore, the Indian consumers perception of online
shopping has undergone a drastic change, and only for the good. Given these
developments, venture capital investors, who were restricting themselves to the
sidelines, are now taking a keen interest in the countrys e-Commerce market.
1.2HOW THE MARKET HAS EVOLVED
On the back of growing Internet penetration and evolving consumer mindset,
the e-Commerce space has touched new heights. The market was initially
limited to print media dominated classified services. It has now expanded to
include new internet-focused business models, e.g., group buying and social
commerce.
The evolution of e-Commerce in India can be broadly divided into two phases
based on the emergence of various sub-segments. Furthermore, distinct
developments define each of these phases.
1.3 E-commerce market size in India
Indias consumer-facing e-Commerce market (B2C-C2C) grew at a whopping
CAGR of 49.1% from 2007 to 2011 to reach a market size of US$9.9 billion.

On the other hand, theB2B market is a small contributor to the overall domestic
e-Commerce market, and it wasestimated at US$50.37 million in 2011.5
Organized retail is growing at a faster pace than total retail.
Organized retail still forms a small portion of the total retail market.
Online retailers are developing in-house logistics capabilities.
Logistics players need to gear up their operating models to tap the huge
opportunity presented by online retail.
Complex tax structures are making decisions relating to warehouse
locations difficult for online retailers.
Organized retail players are faced with the big question of entering the
online retail market.
Online retail players need to focus on innovative business models to
increase their margins.
The share of apparels is expected to increase in online retail.
Underpenetrated segments, such as online groceries, are expected to
grow.
COD has emerged as a preferred payment choice for customers.
Online retail, in its various forms, has been drawing the maximum interest
among all the segments of the internet commerce market.43 A recent report by
comScore Inc. indicated that 60% of online users in India visited retail sites in
November 2011.44
The Indian retail industry was estimated at US$528 billion in 2012 (growing at
11% per annum ). A significant portion (90.4%) of Indian retail is unorganized.
Nevertheless, the share of organized retail is growing at 24% per annum.
Currently, online retail constitutes 1% of the total organized retail market in
India and is set to make a higher contribution to the growth of organized retail
in the country.

According to IAMAI, online retail clocked sales of nearly US$572 million in


2011 and accounted for 6% of overall Internet commerce revenues in India
(grew at a CAGR of 25% since 2007). The market is expected to witness rapid
growth in years to come. While travel is the largest segment among all the
internet commerce categories, internet retail would reportedly match the travel
segment, by the value of goods sold, within three to four years and, thereafter,
surpass it.
1.4 Structure of online retail market
Players adding categories or getting acquired by multi-category players
Categories such as books and electronics saw early traction, with market leaders
moving toward multi-category models. There has also been consolidation in the
market, with larger players acquiring small single-category ones to enhance
their portfolios.Need to target a larger share of customers wallets among key
drivers ofdiversificationOnline retailers incur high costs in their effort to acquire
customers through aggressivemarketing and by offering large discounts on
products. Their underlying thought is to recoverthese investments over multiple
purchases made by the same customer.While this necessarily requires focus on
delivering a superior customer experience to invitefuture business, a broader
product category is a safer bet to invite customers wanting to buyfrom their
preferred e-tailors.A higher volume of transactions could drive down cost per
transaction (economies of scale), andit has a healthy impact on valuations also.
Vertical-focused businesses, however, are here to stay and growVertical-focused
businesses bring to the table a deep understanding of their target customer
segments and product categories.Maintaining category focus enables a portal to
design the entire customer experience aroundthe specific needs of its target
segment. This can enable the portal to become a brand that is
Larger than the products sold and have strong bargaining power with its
supplier group.We believe that while vertical players may have to compromise
on scale in the short term,profitable ventures (similar to those we see in the offline world) are likely to emerge in thisspace in the longer term.
2.0 Marketing strategies for shoppers.com so as to penetrate in Indian ecommerce industryAssuming that will follow market place model

2.1 A complete show down- A first factor is that next step is to take people to
fashionable level we have to make the Indian consumers fashionable so to start
with the very basic rather than just sponsoring a fashion show. Why not do a
fashion show for shoppers.com which none of the competitors have done so far
from which is yet to come in the market. Consumers will do a fashion show,
which is done for shoperr.com but from starting to end.
To start with the fashion show a competition has to be conducted between all
the top fashion institutes which will participate from NIITs across the country
to FAD which is in Pune and other leading institutes and even new start ups
which are an year old will also participate. In this competition shoppers.com top
designers will judge the competition and top 50 will be selected and designs
will go online on the social websites. Designers will promote these designs and
the top 30, which get maximum likes, will be selected.
Now who will walk the ramp- an online competition will be held and where
entries will be called and judging panel from shoppers.com will be selecting the
top 50 contestants and the competition will go on social networking websites
and out of which 15 participants will be selected.
The selected participants will be walking the ramp with the top models of
Industry with whom the youth gets connected as fashion star.
The fashion show will be of two rounds and 30 people will be walking the ramp
out of 15 will be selected the shoppers.com panel and other 15 top models of
Indian fashion Industry. The 30 participants will be made in a pair of two such
that there has to be a selected participant and other from the industry.
The costumes of models from Indian fashion industry in the first round will be
among the top 30 designs which have got maximum like on social media
website and in round two will be costumes from the designers of shopper.com
while the selected participants
Costumes for the first round will be from designers of shoppers.com and for the
second round will among the top 30 designs which have got the maximum likes
on social media website.
This has to be followed for the first year fashion show.

With the second year fashion show their addition more colleges and start-ups
getting involved with shoppers.com the aim is to engage more of Indians brands
and promote Indian brands on shoppers.com.
With third year fashion show a probable list of 30 models from Indian industry
will be selected and out of which 15 will be walking the ramp. The 15 will be
selected through a process of maximum likes and voting process on social
media website. The idea behind is whom does the consumers want to see
walking for them the particular year. The fashion show is happening for the
customers then it should better happen their way.
The reason promoting Indianbrands is offering something new fresh to the
consumers and profit margin percentage is more as comparison to the other nonIndian brands.
2.2 Creating a virtual market- The shoppers bazaar is a click away. A virtual
bazaar will be made on the online portal where a person has to do shopping
from Banaras sitting in Mumbai could be possible. The aim is to make shopping
possible from anywhere in India without physical presence. The aim is not to
make a virtual mall but a virtual bazaar the difference is in virtual the shops of
Adidas, Puma, Reebok these brands are easily available on online on our
website and with the distribution channel which these brands have the same
product is available all over India at the same time. We have to offer which is
specific available at particular place only and not everywhere a process of
buying has to be made easier and simpler.
The shoppers bazaar will make us access to
The shops of Varanasi are famous for all the bridal clothes and other clothes,
whichVaranasi is famous for. So the difference is ordering or wanting something
from Varanasi will not make us to travel to Varanasi that will reduce the cost of
travelling.
The famous fashion street in Mumbai and Pune, which is famous all over India,
will be a click away.
The famous street shopping of New Delhi it has to be there this has to be the
USP of shoppers.com, which no can offer, but shoppers.com will.

The focus is on maximizing the buyers in the shoppers bazar the aim is not to
cater to only a specific buyers but it for mass. The more the buyers better it is
for the shoppers bazaar. The products offered in shoppers bazaar will go
through process of quality check which shoppers.com will be taking special
care of. The aim is to give one-month warranty on the product, which even the
local seller, will not be giving to the buyer. The outcome of this will be for
example a buyer in Mumbai will not buy shoes directly from Fashion Street but
would rather prefer to buy it from shoppers bazaar the reason would be firstly,
the product will be having warranty of one month which a local seller at fashion
street will not be offering but shoppers bazaar will offering it. Secondly, the
product which shoppers bazaar offers goes through a quality check process,
which a particular will not be able to get. Thirdly, the cost of his reaching to
seller and buying will be cut down directlyas the product will be delivered at the
desired place.
A totally different segment has to be there for the fashion show clothes, which
have to be available on our shopper.com bazaar for taking our marketing up to
another level. Shoppers.com will be offering the costumes, which selected
participants, and the models were wearing while walking on the ramp.
The target is to get maximum orders for shoppers bazaar to incur the cost as the
product, which will be offered as low as of Rs. 250 to as high as Rs. 3000. The
more orders more cost effective it will be. As the expected order for 1st year is
between 50000-60000 units.
The Plan for 2nd year is to open bazaars of Rajasthan and famous shops of
Amritsar. So now buyer has product from Varanasi to Amritsar just a click
away.
The plan for 3rd year is to get famous festive bazaar at shoppers bazaar which
would lead a maximum mass attracted at the shoppers.com

The availability of famous brands which are not offered by any other online
retailer which are very famous brand but not available.
2.3 Rating a particular product- The trust factor has to be created among the
customers. To make online shopping more trustworthy for that a buyer has to

give feedback for product which it buys which could not be only available to
online retailer but to also to the customer who next comes online just to buy that
product so for a rating system which has to be created after receiving a product
which has been delivered. A consumer has to come and rate the product what
could lead a buyer rate a product when it is online next time.
Rating a product is sharing views and giving feedback of a particular product
which will reflect a likes and dislikes of the buyer. No matter different buyers
have different about every products they buy but upto a extent it will help other
buyers to make a decision whether to go for a particular product or not.
The rating will give between 1-5 where 1 will be the minimum and 5 will be the
maximum rating, which can be given to a particular product.
To lead customers to visit shopper.com to rate a particular product discounts has
to be offered or free coupons to be offered of Caf coffee day, Dominos, Mc
Donalds to customer for on its next order.
The fashion bazaarproducts have also to be given a rating system which gives a
clear picture to shopper.com and the other side of the shoppers.com who are
buying the product so as to the product which they are buying is rated by the
customer to whom products have been already delivered.
Rating the shoppers bazaar concept will also be helpful to shoppers.com to take
shoppers bazaar up to another level.
The plan for 2nd year is start rating the videos which shoppers.com shows for the
products, which it offers.
The plan for 3rd year is to availability on the entire offering by shoppers.com.
2.4 Videos on YouTube- A short video of a product which is available on online
could be helpful in judging a product than non-availability of video product.
It will lead toconvert more customers buying the product than just visiting the
product the product. In the most worst-case scenario we can track in actual how
many have actually visited the website and seen the video that will give us a
clear view so as to what the response is.

,
More customers will visit the site before a particular product.
2.5 Compare the price- online availability on comparing the prices before
buying a product from shoppers.com. Shoppers.com will always the lowest
available in the market.
2.6 Design your product- The feature is unique on its own designing your own
product and buying a product. None of e-commerce retailer has come up with
this. A platform where you can design whatever you like on a t-shirt available
on online retail store you put different color and check what is suiting and what
not. Freedom to buyers to wear their own design becomes their own designer.
There will be suggestion given like for example a certain design will be given
so, the person designing can get an idea of about how things are going and how
it should go.
The use of this feature is to design and gift. On birthdays this will be quit
handy thing to gift to a friend.
3.1 PROFUT AND LOSS STATEMENT FOR 1ST YEAR

Expenses

(Rs.)

Legal formalities

100,000

IT infrastructure

150,000

Office space

45,000

Payment gateway

30,000

Employee salaries

30,00,000

Utilities (Power,
Internet,

10,000

Incomes

(Rs.)

sales

37,308,000

Loss

9,327,000

Maintenance)
Shipping (Rs. 45
per order)
10,00,000*45
10,00,000
Marketing
46,635,000 Total
Total

46,635,000

3.2 PROFIT AND LOSS STATEMENT FOR 2ND YEAR


Expenses

(Rs.)

IT infrastructure

120,000

Office space

45,000

Payment gateway

12,000

Employee salaries

30,00,000

Utilities (Power,
Internet,
Maintenance)

10,000

Shipping (Rs. 45
per order)
12,00,000*45
Marketing

Total

Incomes

(Rs.)

sales

52,368,300

Loss

5,818,700

TOTAL

58,187,000

54,000,000

10,00,000

58,187,000

3.3 PROFIT AND LOSS STATEMENT FOR 3RD YEAR


Expenses

(Rs.)

IT infrastructure

120,000

Office space

45,000

Payment gateway

12,000

Employee salaries

30,00,000

Utilities (Power,
Internet,
Maintenance)

10,000

Shipping (Rs. 45
per order)
18,00,000*45

Incomes

(Rs.)

sales

84187000

TOTAL

85870740

81000000

10,00,000
Marketing
PROFIT
Total

1683740
85870740

4.1 CONCLUSION
Thus the conclusion that shoppers.com will be earning profits after 2 years and
during these two years a lot profit is expected from the consumers.

Appendix-1

SWOT ANANLYSIS

Strength

A well established foreign brand.


A financially strong background.
Knows about in and out of the
business.
Has a very strong market place
model.
Does not need an investor for its
survival.

Opportunity
The Indian e-commerce industry
is not organized so it is a good
opportunity to enter the market.
Can adopt a good model whether
it could be inventory based model
or market model.
Indian market to grow twice as it
is right now.
Market in India will is supposed
to be big, a big market has to be
covered with come up with
logistics solution.

Weakness

Not much aware about Indian ecommerce market and its customer.
First time it is taking up its business
outside its country boundaries.
Has no market share in India.
Indian customers are not aware of
shopper.com as a brand in foreign
market also.

THREAT
Local existing Indian e-commerce
retailers will give tough competition.
With growth in the industry many local
as well as foreign brands will be
entering with FDI coming to India.
The Indian brands are offering heavy
discounts on online retailing.
With growth of market.
The competitors have plans to deal with
the growth of e-commerce industry in
India.